Lonsdale Street Contract Variation Approved

Published on 12 August 2026

Southern Grampians Shire Council has approved a contract variation to enable demolition works at 90–92 Lonsdale Street to be safely completed. The budget needed to be altered when previously undetected asbestos contamination and underground structures were uncovered during the demolition phase of the project.

Additional funding of $132,860 will cover the removal and disposal of contaminated material, specialist hygienist services and the removal of a previously unidentified fuel container discovered beneath the building foundations.

Mayor Cr Dennis Heslin said the variation was necessary to address conditions that could not have been identified until demolition had begun.

"When you're demolishing older buildings, there can be hidden surprises beneath the surface," Cr Heslin said.

"Despite thorough investigations before works commenced, the contaminated material was concealed beneath the building's floor slab and original foundations, making it impossible to detect until those structures had been removed."

During the course of demolition, contractors uncovered a redundant underground fuel tank, contaminated soil, asbestos-containing material embedded within the original foundations and an additional concrete slab that was not shown on historical records.

The discoveries required work to pause while specialist hygienists assessed the site and developed an appropriate management plan.

Approximately 280 cubic metres of contaminated soil has since been removed and transported to a licensed EPA-approved landfill in Stawell for safe disposal at significant cost to the project.

Further work was required after contractors uncovered a second concrete slab beneath the original shop floor, along with additional contaminated material that also required specialist removal.

Cr Heslin said Council had a responsibility to ensure the site was managed safely and in accordance with environmental regulations.

"No one welcomes additional costs on a project, but when unexpected contamination is uncovered the only responsible option is to remove it safely and properly," he said.

Council's priority has been protecting the safety of workers, the community and the environment while ensuring the project continues in compliance with EPA requirements."

The approved contract variation will be funded through capital savings identified within Council's 2026/27 capital works program.

Recent rainfall has temporarily delayed access to parts of the site, with the final stage of demolition to be completed once conditions allow.

The demolition works are preparing the site for the future Hamilton Library, Community Hub and Civic Square project, one of the largest civic developments ever undertaken by Southern Grampians Shire Council.

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